Russia’s central bank has advised commercial banks on how to identify and block cards and wallet accounts used by shady businesses. In addition to illegal currency traders and financial pyramids, the regulator has also listed crypto exchangers as suspicious entities.
Bank of Russia’s New AML Recommendations Target Cryptocurrency Exchangers
Russia’s central bank has published a set of criteria that banks can use to identify electronic cards and wallets used by companies operating in the underground economy, Forklog reported. According to the monetary authority, these are not only illegal currency traders and financial pyramids, but also cryptocurrency exchangers.
The bank pays particular attention to transactions between private individuals as the regulator claims that these entities often use accounts registered under false names to make and receive payments. Russian banks should analyze and identify suspicious transactions as part of their anti-money laundering (AML) efforts and terminate their services.
Among the operations considered to be of concern, the Bank of Russia lists cash deposits and withdrawals when they exceed 30 per day. A large number of individual payers or beneficiaries, more than 10 per day or 50 per month, should also trigger action from financial institutions.
The same is true for frequent transactions when the total amounts to at least 100,000 Russian rubles (nearly $ 1,400) per day or 1 million rubles ($ 14,000) per month, the report details. Small intervals – of less than a minute – between deposits and withdrawals should also alarm bank officials.
Accounts not used to pay utility bills are considered suspicious
The Central Bank of Russia (CBR) advises commercial banks to also consider cases where the average balance remaining at the end of each day does not exceed 10% of the average daily trading volume in a week. Accounts that are not used to cover utility bills or pay for goods and services can also be blacklisted.
A bank’s customer may be considered suspicious if their transactions meet at least two of the criteria described. To identify these individuals, the Bank of Russia further requires banks to track fingerprints left by account holders, including information identifying devices used to access and transfer funds remotely.
The Bank of Russia has opposed the legalization of cryptocurrencies and related activities while other Russian authorities have attacked websites disseminating information on cryptocurrency trading and platforms providing access to cryptocurrency. exchange services. In July, the financial authority issued a recommendation against listing securities linked to crypto assets on Russian stock exchanges.
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